E*TRADE Financial Corporation Message Board

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  • e_esoteric e_esoteric • Apr 19, 2012 8:13 PM Flag

    Good Conference Call

    I would hardly describe the conference call as spectacular. Yes, their EPS beat analyst estimates. However, top line revenues are down YoY and so are earnings if you dismiss the income tax benefit. Finally, Daily Average Revenue Trades (DARTS), the prime source of income for these kinds of discount brokerage firms are also down YoY. This last part should be of no particular surprise given the extremely low volume involved in the overall market for several weeks now.

    I'm not short; I closed my ETFC positions days ago. But if you were looking for a huge gap tomorrow, I would perhaps lower my expectations as I said, this was more mixed than anything.

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    • gorakrishna gorakrishna • Apr 19, 2012 8:19 PM Flag

      I understand your point, but I believe that you are incorrect when you suggest that trading is the main source of revenue.

      In actuality, the primary source of revenue is NIM. Trading revenue is a distant second.

      Agree with you...highly unlikely that we will see a pop tomorrow. I expect to see ETFC trade back down into the $8's this summer, before blasting northward in late Q3 or Q4.

      GK

 
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